Arup will submit a planning application for the 2.2km light rail, and work could begin in 2017 with the system ready for operation by the end of 2020.

The scheme forms part of a £1.5 billion (€1.9 billion) investment programme revealed by the council, and Councillor Sian Timoney said the time was right as a 20-year plan for major transformation of the town was being announced.

She said, “The time is absolutely right for Luton following significant investment in supporting infrastructure at Junction 10a, the Luton Dunstable Busway and the Luton Town Centre Transport Scheme.

“We have partnered with a number of respected international developers and investors in ambitious development plans with more than £1.5 billion investment potential.”

The light rail route will run between two purpose-built stations, before passing through the airport’s existing car park and arriving at the airport’s central terminal area.

The link – which will be funded by the council – will reduce the journey time from the airport to London to just 30 minutes.

Other £110 million (€139.41 million) airport redevelopment plans are already underway, while the council also revealed it was working in partnership with major investors and developers to transform the town over the next few years with several major developments.